ENVIRONMENTAL IMPACT

As a hotel company, we rely on nature’s resources to construct our buildings, fill them with heat and light, and transform ordinary buildings into extraordinary places to stay. Our hotels provide dining experiences, spas, engaging lobbies and a comfortable place for guests to relax at the end of the day. We strive to ensure that we provide the best experience to our guests, while also being responsible in regards to our environmental impact.

As our portfolio continues to grow, we have an even greater obligation to ensure we are operating in a way that enhances our communities and preserves our local and global environment. Putting this philosophy into practice means we focus on reducing our environmental impact and integrating sustainable innovation across our value chain.

OUR PRIORITIES

REDUCING ENVIRONMENTAL IMPACT

Since launching EarthView, we began tracking our utilities with sophisticated software that allows us to better manage our energy, greenhouse gas (GHG) emissions, water, and waste. Having reliable access to this detailed information also allows us to drive efficiencies, improve our operations, and become better stewards of our environment.

Energy Reduction

According to the Global Alliance for Buildings and Construction, energy usage in buildings and for building construction represents more than 33% of energy consumption worldwide. As the Earth’s population continues to grow, and purchasing power in emerging economies rises, energy demand in buildings could increase by 50% by 2050. Meanwhile, global building floor area is expected to double by 2050, further driving construction-related energy demand and corresponding GHG emissions.

In recent years, consumers, investors, regulatory bodies, and other stakeholders have pushed for increased transparency on how businesses manage their energy usage. As building owners, we have an opportunity and responsibility to be leaders in driving reductions in energy usage and subsequent emissions into the atmosphere. This is why our approach includes employing energy efficient technology and energy conservation.

Greenhouse Gas Reduction

In December 2015, nearly every country in the world agreed to the first global pact aimed at reducing GHG emissions. This agreement, the Paris Climate Accord, aims to limit global warming to less than 3.6 degrees Fahrenheit compared to pre-industrial levels in an effort to avert the worst effects of climate change.

At Hersha, curbing our energy usage directly reduces our GHG emissions. We also installed an on-site solar photovoltaic system (PV) at one of our hotels and actively evaluate additional renewable energy opportunities. We will continue to track our greenhouse emissions, innovate to reduce our impact, and support infrastructure such as electric vehicle charging stations that help reduce society’s emissions into the atmosphere.

Pictured: Our Residence Inn Coconut Grove Hotel is topped with a 336-panel, 92 kW Solar PV system. The system captures renewable energy from the sun, and generates 150,000 kWh of electricity each year for the hotel. This system provides 10% of the total hotel electricity usage.

* Data based on improvements from the Company’s baseline year of 2010 and excludes fugitive emissions estimated at less than 1% of total emissions.

Waste Reduction

According to the Global Footprint Network, global demand for resources is currently equivalent to 1.5 times what the Earth can regenerate in one year. Our natural resources are too valuable to go straight from extraction to usage to landfill. For this reason, Hersha takes an approach to embed circular economy principles into our day-to-day operations. All of Hersha’s hotels have a comprehensive recycling program and we now are implementing an organic waste composting program at many of our hotels that have food and beverage outlets.

Pictured: The Envoy in Boston has furnishings constructed with reclaimed wood and TV stands made from up-cycled bicycle frames.

Water Reduction

As hotels require large amounts of water to operate, we continue to implement reduction measures and drive water efficiencies to benefit our operations and our communities over the long-term. To this end, we work with our purchasing and development teams to utilize more efficient water fixtures such as low-flow showerheads and faucets, and toilets that reduce water usage, all while maintaining high standards for our guests. For hotels with in-house laundry, we rolled out energy and water efficient laundry initiatives. Additionally, in many drought-prone areas, we upgraded our landscaping plan to utilize native plants, thereby reducing excess watering.

Pictured: The Cadillac Hotel & Beach Club has a 93 room LEED Certified tower that reduces water consumption by 30% compared to other hotels.

GET TO KNOW THE TEAM

Dave Campbell, LEED GA – Regional Engineer, West Coast

Dave Campbell is a whiz when it comes to energy efficiency. His engineering skills stem from his Army experience as a Blackhawk Helicopter Crew Chief. Dave started his sustainability journey almost eight years ago at the Courtyard by Marriott San Diego Downtown, built in 1928 and located in the picturesque historic Gaslamp Quarter. Dave and his team took this hotel from an Energy Star score of 45 up to a 79 through identifying conservation measures and implementing efficient technologies at the hotel. Now a Regional Engineer, Dave shares his passion of sustainability with others and is able to influence projects regionally, such as LED lighting retrofits, A/C guestroom controls, variable speed drive upgrades, and chiller systems. Dave was recognized by the USGBC in 2016 by receiving the EBie Award for excellence in sustainability implementation.

INTEGRATING SUSTAINABLE INNOVATION ACROSS OUR VALUE CHAIN

We continue to innovate in ways that increase our efficiency – lowering our costs, reducing our risk, and utilizing our influence – to create positive change across our value chain. Each of our hotels is evaluated for deployment of innovative and efficiency upgrades. This includes LED lighting, guestroom energy management systems, and efficient laundry technology. We also aim to create a more sustainable supply chain by converting to recycled materials where possible, reducing unnecessary disposable products, using bio-based products for laundry and cleaning, and establishing an energy and water efficient purchasing policy.

We continue to push the envelope and employ many strategies and operational functions that help decrease the environmental footprint of our hotels. In 2017, we continued to systemically roll out energy savings initiatives across our portfolio. By identifying hotels with the greatest savings opportunity, as well as initiatives that can be rolled out across the portfolio, we are strategic in our implementation to ensure the greatest impact.

LED Lighting

LED Lighting – A majority of Hersha hotels are converted to LED lighting. LEDs are more efficient than incandescent and florescent lighting and have a much longer lifespan. This ROI project is saving over $800,000 annually in electricity costs at our hotels.

Tankless Water Heaters

Tankless Water Heaters – By implementing tankless water heaters, we not only save space, but tankless heaters are 15-20% more efficient than traditional storage water heaters.

Energy Efficient Laundry

Energy Efficient Laundry – By upgrading our laundry program to utilize detergent that requires less hot water and reduces cycle times, we decreased the use of natural gas and water associated with laundry cycles by more than 10%.

ENHANCING GUEST EXPERIENCE

We believe that a hotel that engages with the local community, provides well-sourced products, empowers their associates, and takes an active interest in the local environment offers an engaging and interesting option for potential guests. Hotels that care about people and the environment are likely to also take a holistic approach to all aspects of the hotel service, which our guests notice. Electric car charging stations (currently available at a growing number of Hersha’s hotels), energy efficient lighting, locally sourced food items, recycling programs and at some hotels, complimentary bike rentals all enhance the guest experience.

For many of our corporate and group guests who are increasingly interested in tracking their environmental footprint while travelling, we are able to provide environmental information for Request for Proposals (RFPs) and provide sustainable options for their meetings. To that end, we offer guests the opportunity to help us in our mission by providing information about our sustainability efforts and inviting them to participate in initiatives such as in-room recycling and the choice to opt-out of housekeeping at specific hotels.

ELECTRIC VEHICLE HOUSE CAR AT THE AMBROSE HOTEL

Worldwide there are now over 2 million electric vehicles on the road. That number is projected to increase to 9 million by 2020*. With this growth in mind, over the past year, we continued installing electric vehicle charging stations at our hotels. Additionally, we purchased our first all-electric house car at the Ambrose Hotel in Santa Monica, California. Whether an electric vehicle or charging stations, this is an area where we can offer an amenity to our guests while promoting our sustainability values.